Ian Leverington's Blog

Everyone of course but, why does no one like talking about it? Why is money such an uncomfortable subject? For Example: When was the last time you asked yourself 'Why do I use my bank?' Probably never. You set up an account when were 12 and you've probably never changed banks since. What do you think your bank is paying you for keeping your money with them? If it's more than .10%, you're above average! Online banks like Tangerine or EQ Bank offer as much as 2.00% for a regular savings account. Think having a local branch is convenient? When was the last time you visited your branch? Only time I've gone in in years is because my bank (BMO) still doesn't offer mobile cheque deposits. About the only unique product the big banks offer is unsecured lines of credit. Otherwise, literally almost every other money product can be accessed elsewhere. I don't work for Tangerine or EQ Bank or any financial institution, I just think it's time people start caring

Here's how mortgage qualifying in Canada works (regulated by OSFI - Office of the Superintendent of Financial Institutions )... One can only qualify to spend up to 39% of their total household, gross income toward basic home expenses which include mortgage payments, property taxes and heating costs. It's important to know that exact calculations are only used for property taxes in this equation. An estimate of usually no less than $100/mth is used for heating costs and when it comes to mortgage payments, the BoC's 5 year benchmark rate of 4.64% is used instead of the actual rate which could be half that. So what all this math boils down to is that what one can actually qualify to spend about 30% of their gross income on mortgage payments but wait... That's assuming your credit is top notch. If you have more of an average credit score, you could be limited by another 5% less. AND this is all only if all your other debt payments (credit cards, car loans, lines of

A collateral charge mortgage is a method of registering a mortgage on a property's title up to or above the value of the home with the purpose of making futuring borrowing against the home easier. In contrast, a regular mortgage is only registered against the property for the total amount borrowed. Ex: If your home value is $410,000 and you owe $307,000 the mortgage registered against your title may still be as much as $410,000 or even higher. The benefit is supposed to be that you can then borrow money from your home in the future without having to refinance your mortgage, meaning you avoid the legal process however, your lender may still charge a fee to advance additional funds. In order to borrow more you're still required to qualify and an appraisal is still needed which you may be required to pay for. The primary disadvantage to a collateral charge mortgage is that they can't be simply transferred to a new lender in order to take advantage of a better mortgage

Average debt balance for Canadians in 2015 was $21,058. I have reviewed a lot of credit bureaus and I learned early on in this business that most people have an inadequate understanding of how credit reporting works. Most go about their life almost never thinking about their personal credit profile until they want to apply for some type of credit or loan. The thing is, some forms of credit of very easy to qualify for like secured or low limit credit cards or auto loans  which are weirdly easy to qualify for considering some vehicle payments can be as much a a mortgage payment! So these types of credit don't really require much for preliminary advice or planning. Other types of credit are more difficult to qualify for, like unsecured loans, lines of credit and mortgages and these require a much more strict understanding of borrowing requirements. So, to help you work toward a 800+ credit score which will allow you to qualify for a mortgage or any type of credit you want,

There is plenty of debate about whether RRSPs or TFSAs are the best place to park your savings, but industry professionals  say if you understand the advantages and disadvantages of each, there is little reason not to use both. "Both the RRSP [registered retirement savings plan] and the tax-free savings account form a very important role in an overall financial plan," explains Jared Webb, an adviser with Fernhill Financial in Victoria, B.C. "They're both very effective.They're both fantastic tools. One is not better than the other, really. They serve different purposes. Like any tool in a tool chest, if you use the proper tool for the job, it's the most effective." It's the tax treatment that's different, and that can make a difference when deciding which one is right for you. "Tax-free savings accounts and RRSPs are simply just tax strategies," Webb said. "They're just telling the government how to treat, fro

Late in 2015, Finance Minister Bill Morneau announced changes to down payment requirements. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from five per cent to 10 per cent for the portion of the house price above $500,000. The five per cent minimum down payment for properties up to $500,000 remains unchanged. Mortgage Professionals Canada Chief Economist, Will Dunning, is reviewing the full impact of this down payment increase – in particular, on first-time buyers. We will provide further analysis as it becomes available. In Canadian Mortgage Trend's Fall Report, Dunning discusses why raising the down payment could cause problems for the housing market, including this cautionary observation: “Rising prices have made it increasingly difficult for first-time homebuyers to accumulate down payments. Increasing down payment requirements would, most likely, severely dampen housing demands from people who are financially well-qualifie